French firms say protectionism bad for business

By Thomas Atkins

FRANKFURT (Reuters) - Two of France's top industrial leaders took a swipe on Friday at the "economic patriotism" souring relations between European neighbors, saying it was bad for business and at odds with the realities of global competition.

"This kind of country nationalism is clearly negative," said Jean-Pierre Clamadieu, chief executive of specialty chemicals company Rhodia (RHA.PA: Quote, Profile, Research, Stock Buzz) at the Reuters Chemicals Summit.

He was joined by Benoit Potier, chairman of blue-chip company Air Liquide (AIRP.PA: Quote, Profile, Research, Stock Buzz), who said industries were best protected from foreign advances through profitability and performance, not nationalist barriers.

"The best defense is the value of the share, and the value of the share comes from a regular and good performance," he said.

The comments from the two industry chiefs come as a debate rages over the protectionist measures that have surfaced in Europe.

France is hostile to a bid by Italy's Enel (ENEI.MI: Quote, Profile, Research, Stock Buzz) group for utility Suez (LYOE.PA: Quote, Profile, Research, Stock Buzz), while Spain has moved to block a bid for energy firm Endesa (ELE.MC: Quote, Profile, Research, Stock Buzz) by Germany's E.ON EONG.DE.

At the same time, Poland is trying to stop the Polish element of a merger between Italy's Unicredito (CRDI.MI: Quote, Profile, Research, Stock Buzz) and Germany's HVB (HVMG.DE: Quote, Profile, Research, Stock Buzz), while both France and Luxembourg have resisted a bid by Mittal Steel (ISPA.AS: Quote, Profile, Research, Stock Buzz) for Arcelor CELR.PA.

Clamadieu, whose company posted over 5 billion euros in sales in 2005 and is listed in both Paris and New York, said the meaning of national identity had long faded in industries forced to face the realities of globalized competition.  Continued...